why KAR Auction Services Inc. [KAR] is a Good Choice for Investors After New Price Target of $22.44

KAR Auction Services Inc. [NYSE: KAR] closed the trading session at $15.93 on 02/17/21. The day’s price range saw the stock hit a low of $13.83, while the highest price level was $16.05. The company report on February 18, 2021 that BacklotCars and TradeRev Combine To Form Streamlined Dealer-to-Dealer Marketplace.

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U.S. Migration to BacklotCars Offers Greater Transparency and Better Outcomes for Sellers and Buyers.

KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), a global vehicle remarketing and technology solutions provider, is combining the company’s TradeRev and BacklotCars platforms into a single digital marketplace. U.S.-based dealers will migrate to BacklotCars, while Canadian dealers will continue operating exclusively on TradeRev. The company is combining the two fast-growing dealer-to-dealer marketplaces in the U.S. to provide sellers access to the largest buyer base possible and give buyers access to greater, more diversified dealer inventory. The company selected BacklotCars based on its accelerated growth and high performance in terms of conversion, price retention and customer satisfaction.

The stocks have a year to date performance of -14.40 percent and weekly performance of -16.42 percent. The stock has been moved at -13.71 percent over the last six months. The stock has performed -12.76 percent around the most recent 30 days and changed -11.84 percent over the most recent 3-months.

If compared to the average trading volume of 1.51M shares, KAR reached to a volume of 16261249 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about KAR Auction Services Inc. [KAR]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for KAR shares is $22.44 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on KAR stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Truist have made an estimate for KAR Auction Services Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on February 17, 2021. The new note on the price target was released on February 17, 2021, representing the official price target for KAR Auction Services Inc. stock.

The Average True Range (ATR) for KAR Auction Services Inc. is set at 0.97, with the Price to Sales ratio for KAR stock in the period of the last 12 months amounting to 0.89. The Price to Book ratio for the last quarter was 1.28, with the Price to Cash per share for the same quarter was set at 9.82. Price to Free Cash Flow for KAR in the course of the last twelve months was 10.09 with Quick ratio for the last quarter at 1.60.

KAR stock trade performance evaluation

KAR Auction Services Inc. [KAR] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -16.42. With this latest performance, KAR shares dropped by -12.76% in over the last four-week period, additionally sinking by -13.71% over the last 6 months – not to mention a drop of -28.11% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for KAR stock in for the last two-week period is set at 28.19, with the RSI for the last a single of trading hit 20.01, and the three-weeks RSI is set at 34.24 for KAR Auction Services Inc. [KAR]. The present Moving Average for the last 50 days of trading for this stock 18.86, while it was recorded at 18.40 for the last single week of trading, and 16.37 for the last 200 days.

KAR Auction Services Inc. [KAR]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and KAR Auction Services Inc. [KAR] shares currently have an operating margin of +11.29 and a Gross Margin at +35.09. KAR Auction Services Inc.’s Net Margin is presently recorded at +3.32.

Return on Total Capital for KAR is now 5.68, given the latest momentum, and Return on Invested Capital for the company is 2.30. Return on Equity for this stock inclined to 5.93, with Return on Assets sitting at 1.33. When it comes to the capital structure of this company, KAR Auction Services Inc. [KAR] has a Total Debt to Total Equity ratio set at 228.54. Additionally, KAR Total Debt to Total Capital is recorded at 69.56, with Total Debt to Total Assets ending up at 57.31. Long-Term Debt to Equity for the company is recorded at 135.28, with the Long-Term Debt to Total Capital now at 41.18.

Reflecting on the efficiency of the workforce at the company, KAR Auction Services Inc. [KAR] managed to generate an average of $6,039 per employee. Receivables Turnover for the company is 1.05 with a Total Asset Turnover recorded at a value of 0.40.KAR Auction Services Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 1.60.

Earnings per share (EPS) analysis for KAR Auction Services Inc. [KAR] stock

With the latest financial reports released by the company, KAR Auction Services Inc. posted 0.09/share EPS, while the average EPS was predicted by analysts to be reported at 0.16/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -43.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for KAR. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for KAR Auction Services Inc. go to 14.00%.

KAR Auction Services Inc. [KAR]: Insider Ownership positions

There are presently around $2,522 million, in the hands of institutional investors. The top three institutional holders of KAR stocks are: WELLINGTON MANAGEMENT GROUP LLP with ownership of 17,479,860, which is approximately -1.188% of the company’s market cap and around 0.70% of the total institutional ownership; BLACKROCK INC., holding 14,284,706 shares of the stock with an approximate value of $263.7 million in KAR stocks shares; and VANGUARD GROUP INC, currently with $222.63 million in KAR stock with ownership of nearly 1.873% of the company’s market capitalization.

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Positions in KAR Auction Services Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 136 institutional holders increased their position in KAR Auction Services Inc. [NYSE:KAR] by around 25,691,711 shares. Additionally, 146 investors decreased positions by around 19,807,860 shares, while 57 investors held positions by with 91,115,223 shares. The mentioned changes placed institutional holdings at 136,614,794 shares, according to the latest SEC report filing. KAR stock had 37 new institutional investments in for a total of 12,257,523 shares, while 50 institutional investors sold positions of 13,039,759 shares during the same period.

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